Earnings Per Share

9 Months Ended

Sep. 30, 2012

Earnings Per Share

16. Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share (“EPS”) for the three and nine months ended September 30, 2012 and 2011:

(Dollar amounts in millions, except per share data) Basic EPS:	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Net income attributable to BlackRock	$	642		$	595		$	1,768		$	1,782
Less:
Dividends distributed to common shares		259			246			803			760
Dividends distributed to participating RSUs		—			3			1			9
Undistributed net income attributable to BlackRock		383			346			964			1,013
Percentage of undistributed net income allocated to common shares(a)		99.9	%		98.8	%		99.9	%		98.8	%
Undistributed net income allocated to common shares		382			342			963			1,001
Plus:
Common share dividends		259			246			803			760
Net income attributable to common shares	$	641		$	588		$	1,766		$	1,761
Weighted-average shares outstanding		172,359,141			179,034,837			176,116,975			186,187,318
Earnings per basic share attributable to BlackRock common stockholders	$	3.72		$	3.28		$	10.02		$	9.46
Diluted EPS:
Net income attributable to common shares	$	641		$	588		$	1,766		$	1,761
Weighted-average shares outstanding		172,359,141			179,034,837			176,116,975			186,187,318
Dilutive effect of:
Non-participating RSUs		2,944,239			2,225,498			2,573,971			1,812,687
Stock options		147,152			564,994			265,753			741,587
Convertible debt		—			—			—			51,360
Total diluted weighted-average shares outstanding		175,450,532			181,825,329			178,956,699			188,792,952
Earnings per dilutive share attributable to BlackRock common stockholders	$	3.65		$	3.23		$	9.87		$	9.33

^(a)  Allocation to common stockholders is based on the total of common and participating security stockholders (which represent unvested RSUs that contain nonforfeitable rights to dividends). For the three months ended September 30, 2012 and 2011, average outstanding participating securities were 0.2 million and 2.2 million, respectively. For the nine months ended September 30, 2012 and 2011, average outstanding participating securities were 0.2 million and 2.3 million, respectively.

Basic EPS is calculated pursuant to the two-class method to determine income attributable to common stockholders. Basic EPS is calculated by dividing net distributed and undistributed earnings allocated to common stockholders by the weighted-average number of common shares outstanding. Diluted EPS includes the determinants of basic EPS and in addition, reflects the impact of other potentially dilutive shares, including RSU awards that do not contain nonforfeitable rights to dividends, unexercised stock options and convertible debentures. The dilutive effect of participating securities is calculated under the more dilutive of either the treasury method or the two-class method.

Due to the similarities in terms between BlackRock non-voting participating preferred stock and the Company’s common stock, the Company considers its participating preferred stock to be a common stock equivalent for purposes of EPS calculations. As such, the Company has included the outstanding non-voting participating preferred stock in the calculation of average basic and diluted shares outstanding.

For the three and nine months ended September 30, 2011, 1,160,753 and zero options were excluded from the calculation of diluted EPS because to include them would have an anti-dilutive effect. There were no anti-dilutive RSUs for the three and nine months ended September 30, 2011. There were no anti-dilutive RSUs or options for the three and nine months ended September 30, 2012.